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The same absolute difference can seem very significant or quite insignificant, depending on the magnitude of the numbers involved.</p>
<p>Suppose you are starting college and are shopping for a laptop in the college bookstore. You find two attractive models, priced at $749 and $759. You probably aren’t going to be terribly concerned about the $10 price difference; instead, you would likely perceive the prices as essentially equivalent. </p>
<p>Now suppose that as you are standing in the checkout line with your laptop, you realize that you will need to go straight to class, and that you need a pen. The checkout counter has a bin of cheap ballpoints for $1 each, and also fancy fountain pens for $11 each. In this case, a $10 difference – the exact same absolute differential – probably looms much larger than it did with the laptops. </p>
<p>So intuitively, the same $10 absolute differential seems insignificant for a laptop, but quite significant for a pen. If you express the difference in relative terms, this becomes evident. The pricier laptop costs only 1.3% more than the cheaper laptop, but the pricier pen costs 1,000% more than the cheaper pen.</p>
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<p>Now consider colleges in the same light. Suppose your safety school has an 80% acceptance rate for women and a 90% acceptance rate for men. That’s a 10% differential in absolute terms, but it probably won’t trouble you, since the odds of getting in are very high regardless. </p>
<p>Now suppose your dream LAC has a 10% acceptance rate for women and a 20% acceptance rate for men. That’s the same 10% differential in absolute terms. But at the LAC, it’s more troubling, since the odds of getting in are low to begin with. Furthermore, that 10% differential means that a random male applicant’s chances are twice as good as yours (since 20% is twice as large as 10%). This is not the case at the safety school; 90% is higher than 80%, but it’s obviously not twice as high. </p>
<p>In relative terms, the same 10% absolute differential would appear quite different at the two schools. At the safety school, the male acceptance rate is only 12.5% higher than the female rate. At the LAC, the male acceptance rate is 100% higher (or twice) the female rate.</p>